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Hola routes your traffic through other peers in the Hola network, making your IP harder to track, thus allowing you to be more anonymous and secure.
Like any P2P network, Hola is a "value exchange" network - you get the Hola service for free (on PC and Mac), and in exchange you provide a certain amount of network and processing power when your computer is not in use. To provide you its functionality, Hola sometimes needs to route your services through peers (other people's devices) on the Hola network.
In return, some of their traffic is also routed through your device securely.
This also means that Hola is harder to detect and block.
Currently, Hola runs in a hybrid mode - combining traditional VPN architecture and peer-to-peer technology.